Unaudited interim results for the six months to 30 June 2024
Fulcrum Metals plc (LON: FMET), a company focused on mineral exploration and development in Canada, announces its unaudited consolidated interim results for the six months to 30 June 2024.
Corporate and Operational Highlights:
· Continued the strategic shift of the Company into a sustainable gold tailings processing business.
· Commenced phased programme at the Teck-Hughes gold tailings project to evaluate the efficiency of the Extrakt Processing Solutions LLC (“Extrakt”) technology in recovering gold and other by-products:
o Phase 1 results achieved exceptional gold recovery rates of up to 59% by using Extrakt’s technology.
o Optimisation underway to achieve targeted recovery rates above 60%.
· Entered into option agreement to acquire 100% of the Sylvanite gold tailings project in Kirkland Lake, Ontario, with an estimated 67,000 ounces of gold in tailings.
o Commenced phased programme at the Sylvanite gold tailings project to evaluate the efficiency of Extrakt’s technology in recovering gold and other by-products.
· Tully Gold project now permitted with drill ready exploration targets.
Financial Highlights:
· For the six months to 30 June 2024 (“H1 2024”) the Company reported a pre-tax loss of £514,654 (the six months to 30 June 2023 (“H1 2023”): pre-tax loss of £1,167,903).
· The Company’s cash balance as at 30 June 2024 was £113,582 (H1 2023: £1,268,202).
· Basic loss per share of 0.010p (H1 2023: loss of 0.030p per share).
· The Company generated no revenue during the period.
Post Period End Events:
· Closed option agreement for the sale of the Group’s uranium projects for a value of up to CA$3.36 million.
· Announced new equity financing commitments of approximately £800,000 at 8p per share including investor subscriptions of approximately £643,500, conversion of supplier fees of £42,000 and proposed Directors’ subscriptions totalling £114,500.
Ryan Mee, Chief Executive Officer of Fulcrum, commented:
“Our journey over the last six months has been transformative as we focus on unlocking the untapped potential within mining tailings in Canada. The promising results from the first phase of our programme at Teck-Hughes highlights the potential effectiveness of Extrakt’s technology and sets the stage for sustainable gold recovery and long-term value creation for the Group’s shareholders. By strategically expanding our portfolio and divesting non-core assets, we are accelerating our path to revenue and positioning Fulcrum as a leader in environmentally responsible mining practices.
This acceleration has resulted in a need to access the capital markets for additional financing. We are pleased to have raised the additional equity financing to advance the Group’s updated tailings strategy, which includes proposed subscriptions of £114,500 from Directors, to take us to the next stage of our development. I am excited for the future and confident in our ability to deliver material value for our shareholders.”
Chairman’s Statement
I am pleased to present our interim results for the period ending 30 June 2024; a transformative period for Fulcrum as we continue to evolve our business model from a pure exploration and development company to a strategic focus on tailings processing that will utilise innovative technology to extract metals in a sustainable way. Notwithstanding the strategic shift, the Group’s focus remains on the development of mineral resources in Ontario, Canada. The Group’s goal is to create a sustainable and profitable solution to one of mining’s most persistent environmental challenges: the management and remediation of historical mining tailings, whilst recovering the valuable metals and minerals they often contain.
Strategic Shift and Rationale
Historically, Fulcrum has been dedicated to the exploration and development of mineral resources; a journey that often spans over a decade before generating revenue. While our exploration projects, including the uranium projects in Saskatchewan, which we successfully divested post the period end, have considerable potential, the Board of Fulcrum recognised the need to accelerate the Company’s path to revenue generation which led to our strategic decision to pivot towards the reclamation and processing of mining tailings in order to extract value from what has long been considered waste.
To this end, we announced mining option agreements to acquire 100% of the Teck-Hughes gold tailings project (“Teck-Hughes) in November 2023, and the Sylvanite gold tailings project (“Sylvanite”) in April 2024. The projects contain millions of tons of tailings from the significant former producing Teck-Hughes and Sylvanite mines, which are strategically located just 3km apart and within the prolific Kirkland Lake gold camp, Ontario, Canada.
Since announcing the acquisition of Teck-Hughes in November 2023 we have been advancing discussions with Extrakt to license its proprietary non-toxic separation technology which extracts metals from tailings without the use of cyanide. The licencing of the Extrakt technology is usually agreed on a project basis following the completion of phased testing and study agreements. We entered into these phased testing and study programs with Extrakt on Teck Hughes in January 2024 and Sylvanite in June 2024. The initial Extrakt leaching test work at Teck-Hughes has achieved excellent initial gold recovery rates of 59.4%, which is far beyond previous cyanide leach testing recovery rates of approximately 30% at Sylvanite. This demonstrates the applicability of the Extrakt technology to our projects and our wider aspirations. The company is continuing term sheet stage discussions with Extrakt on a framework for gold tailings licence exclusivity for the major Timmins and Kirkland Lake gold camps that has produced in excess of 110 million ounces of gold to date.
The environmental and social benefits of remediating historical tailings as well as the considerable size of the market opportunity were also key drivers in our decision to change strategy. Tailings management is a major challenge in the mining industry, with significant environmental implications. In Canada alone it is estimated that the Government is faced with a growing liability of over CA$10 billion to clean-up active and historic mine waste. Meanwhile, Natural Resources Canada estimates that there is approximately CA$10 billion of precious metals contained in tailings. An important outcome from reprocessing tailings is the removal of heavy metals and the cleaning up and reclamation of the tailings areas to provide positive opportunities for land to be repurposed. By seeking to transform waste into a valuable resource, we are not only addressing a critical environmental issue but also positioning Fulcrum as a leader in sustainable mining practices.
In line with our evolved strategy, we have successfully divested our Saskatchewan uranium assets for a value of up to CA$3.36 million, allowing us to focus more resources on the tailings opportunity and our other gold exploration projects. Importantly, we have retained an option to benefit from any future upside potential in the uranium assets which ensures that our shareholders remain positioned to capture additional value from this divestment, whilst retaining two drill ready gold projects in Big Bear and Tully, which are ready for growth, discovery and expansion when funding allows, or possible joint ventures or divestment if appropriate opportunities arise.
Our entry into the tailings business diversifies our portfolio and reduces the inherent risks associated with long-term exploration projects. By entering into joint venture partnerships over our current portfolio of assets and, where applicable, divesting our non-core assets, we further mitigate these risks while enhancing our capabilities and market reach. The Company remains in advanced discussions with Extrakt with regards to the terms of the exclusive licencing agreement of its gold tailings processing technology in Timmins and Kirkland Lake, two significant gold producing regions in Canada. Discussions on plans to establish an Extrakt technology testing facility in Timmins, which would provide important localised testing capability for any tailing project and possible commercial opportunities, are also ongoing.
Finally, I would like to thank Clive Garston, who stepped down as Non-Executive Chairman in June 2024, for his contribution to Fulcrum. Clive played an important role at Fulcrum, helping the company successfully navigate to a quoted company on AIM and oversaw the company evolving from a junior exploration company to a junior exploration and development company. The Company has identified a proposed replacement Non-Executive Chairman and will update the market on this appointment in due course.
The Company has worked resolutely to set in motion an ambitious and exciting pathway for all shareholders and I thank all stakeholders of the Company for their support and dedication.
Alan Mooney
Interim non-executive Chairman
CEO Statement
Operational Highlights
· Teck-Hughes: Significant progress was made at the Teck-Hughes gold tailings project, where the phased evaluation of Extrakt’s proprietary non-toxic separation technology delivered exceptional initial results. Phase 1 demonstrated gold recovery rates of up to 59%, with ongoing optimisation aimed at exceeding 60% recovery. This marks a critical step in validating the commercial viability of our tailings processing approach.
· Sylvanite Gold: In April 2024, Fulcrum entered into an option agreement to acquire 100% of the Sylvanite gold tailings project, which contains an estimated 67,000 ounces of gold in tailings. A phased evaluation programme is now underway to assess the efficiency of Extrakt’s technology, further expanding our presence in the prolific Kirkland Lake gold camp.
· Uranium Project Divestment: Post-period, Fulcrum successfully completed the sale of its Saskatchewan uranium assets, generating funds to support the Company’s strategic pivot towards tailings processing. This divestment has eliminated a significant cost base while maintaining potential upside through a retained interest in future developments.
· Big Bear and Tully Gold Exploration Projects: These projects continue to offer significant exploration potential and remain an important part of our longer-term growth strategy. The Tully Gold project is now fully permitted and drill-ready for expansion of the existing 107k ounce 43-101 compliant gold resource in the significant Timmins-Porcupine gold camp that has produced in excess of 70Moz gold. At Big Bear we have established high priority geophysical exploration targets in addition to an open 3km gold corridor and delineated initial drill targets for discovery in the Schreiber-Hemlo greenstone belt that hosts the significant 21Moz+ Hemlo gold deposit. Future plans for the Company’s gold projects will largely depend on funding being available or possible strategic partnerships.
· Focus on Sustainable Operations: In alignment with our commitment to sustainability, and the exceptional gold recovery rates demonstrated by the Extrakt technology, we are currently discussing terms on exclusivity of the licencing of the Extrakt technology for gold tailings in Timmins and Kirkland Lake in addition to exploring plans to establish an Extrakt technology testing laboratory in Timmins. Completion of either or both initiatives would substantially increase the presence and capability in scaling opportunities for Fulcrum; and would position Fulcrum at the forefront of the application and adoption of Extrakt’s technology in the Timmins and Kirkland Lake gold tailings. It would also provide an additional commercial opportunity through local testing capability for Fulcrum non-operated projects. By its very nature, remediating historical tailings has the potential to clean up and repurpose otherwise polluted land. By seeking to transform mining waste into a valuable resource, we are not only addressing a critical environmental issue but also positioning Fulcrum as a leader in sustainable mining practices.
These milestones reflect Fulcrum’s focus on operational excellence, strategic growth, and the development of sustainable mining solutions.
Financing
Post period on 13 September 2024, Fulcrum announced successful equity financing commitments of approximately £800,000 at 8p, including investor subscriptions of approximately £643,500, conversion of supplier fees of £42,000, proposed Director subscriptions of £89,761 and proposed conversion of accrued Director salaries of £24,731. The proceeds will primarily be used to accelerate testing and onsite evaluation programmes at the Teck-Hughes and Sylvanite gold tailings projects and for the Group’s working capital needs.
Outlook
As we move forward, our focus is on executing our tailings processing strategy. We are committed to developing Fulcrum as a revenue generating business while upholding our values of sustainability and innovation. The divestment of non-core assets, like the Saskatchewan uranium project, has provided us with greater financial flexibility to invest in our refined strategy and to pursue opportunities that align with our vision.
We believe this strategic pivot will create long-term value for our shareholders by accelerating our path to profitability and positioning Fulcrum as a leader in the reclamation and processing of mining tailings in Canada. The progress we have made so far gives us confidence in our ability to deliver on these goals, and we are excited about the future of the Company.
I would like to take the opportunity to thank management and shareholders for their support and shared vision of what we are seeking to achieve and look forward to updating them on our progress.
Ryan Mee
Chief Executive Officer
For more information, please visit www.fulcrummetals.com or contact the following:
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Fulcrum Metals plc Ryan Mee, Chief Executive Officer |
